Where is the Money Going?
One High-Speed Trader Was 4% of Day’s Market Action
Securities regulators are still trying to determine who was behind an immense burst of phony high-speed trading last week that accounted for 4% of all U.S. stock market activity.
Officials say a mysterious algorithm was unleashed from the Nasdaq that placed orders in 25-millisecond bursts involving about 500 stocks. The computer program cancelled all of the orders, resulting in none of the trades going through. read more
Surprise! More IRS Auditing of Large Companies Results in More Taxes Paid
It might seem like common sense, but researchers have validated the assumption that cracking down on deadbeat companies by the Internal Revenue Service (IRS) will result in more taxes being paid.
In a paper published by Accounting Review, three academics concluded more IRS audits yields more government revenues. read more
Outsourcing Tax Collection and Traffic Tickets . . . Has Alabama Crossed the Line?
Small towns with small budgets in Alabama have become golden opportunities for companies offering to take over government services. But critics worry whether the price they pay to outsource traditional government services includes diminished civil rights and due process. read more
Homeless in California Capital Win Payment for Police Destruction of their Belongings
Those who lost their belongings banded together in a class-action lawsuit that challenged the legality of the officers’ actions on the basis that the police threw away their possessions without providing the campsite residents a way of getting them back. The lost possessions included tents, sleeping bags and medicine. The city will cut $796,050 in checks to 1,143 people involved in the case. The checks are expected to range from $400 to $750. read more
Government Wasting Money by not Purchasing in Bulk
The GAO concluded that the agencies were only buying in bulk 5% of the time, which amounted to a savings of $1.8 billion. This savings represents only one-half of one percent of procurement spending. read more
Another Longstanding Montana Campaign Funding Law Struck Down
The law restricted individual contributions to the governor’s race to $630 and contributions to a state legislative candidate to $160, although the amounts were adjusted for inflation after each election cycle. The law also limited the total amount political parties could contribute to a campaign—for example $22,600 for a gubernatorial candidate.
With less than a month before Election Day, deep-pocketed interests can now spend unlimited amounts of money on campaigns read more
Big Bucks Campaign Spending Can Cause Voters to Choose Candidate Who Doesn’t Represent Their Beliefs
According to Richey, these “incorrect” votes changed the results of three of the nine presidential elections he studied. If all voters had chosen the candidate who most reflected their own beliefs, Gerald Ford would have defeated Jimmy Carter in 1976, Al Gore would have defeated George W. Bush in 2000 and John Kerry would have beaten Bush in 2004. read more
VA Official Resigns over Wasteful Conference Spending
Sepúlveda also was accused of lying while under oath during the investigation. One issue was the use of $50,000 in taxpayer money to produce a General George S. Patton parody video. Sepúlveda said he was not aware of the production, but several VA workers testified that he had in fact viewed the videos. The report acknowledged that the training conferences themselves were legitimate, and only criticized the excessive and questionable spending. read more
Drug Industry Pays out $10 Billion in Fraud Settlements in less than 2 Years
The biggest settlements were:
• GlaxoSmithKline (GSK) paying $3 billion to resolve criminal charges for promoting its best-selling antidepressants for unapproved uses and failing to report safety data about Avandia, a much-prescribed diabetes drug, and other products.
• Johnson & Johnson paying a $2 billion fine for off-label promotion of the antipsychotic drug, Risperdal.
• Abbott Laboratories paying $1.6 billion for its illegal marketing of the antipsychotic drug Depakote.
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Are Hospitals Using Emergency Rooms as an Added Revenue Opportunity?
The hospitals get away with what they are doing because it is mostly legal and because the Centers for Medicare and Medicaid Services, the federal body responsible for administering Medicare and Medicaid, actually provides little oversight of billing practices. If the winners in this scheme are the hospitals, the losers are taxpayers, who foot the bill, as well as patients, who see their co-payments increased.
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70 Federal Agencies Owe $14 Million in Unpaid Taxes, but Names of Agencies Censored
According to the report, “More than 90 percent of the delinquent taxes owed are employment taxes, which include monies withheld from employees’ wages that are required to be remitted to the IRS on the employees’ behalf. These taxes are necessary to support Federal programs like Social Security and Medicare.” read more
Goldman Sachs and JPMorgan Chase Slapped Lightly on Corporate Wrists for Financial Malfeasance
Morrison was accused of soliciting underwriting business from Cahill’s office beginning in 2008, while also working on the treasurer’s gubernatorial campaign from Goldman Sachs’ office.
The fine represents the first time that the SEC has penalized someone for pay-to-play violations involving in-kind non-cash contributions to a political campaign.
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Financial Disclosure for Senior Federal Executives Delayed until after Election
Under the legislation, which was sponsored by Sen. Joe Lieberman (I-Connecticut), the disclosure forms would not be made available until December 8. The STOCK Act provision potentially impacts about 28,000 senior public employees, as well as political appointees and high-ranking military officers. The relevant section of the STOCK is opposed by the Senior Executives Association and the American Foreign Service Association. read more
Local TV Stations Accept Big Money for Political Ads…and Don’t Ask Questions
Big winners in the million-dollar political ad wars this year are local television stations, many of which have conveniently avoided delving into the murky world of campaign donors as part of their news coverage for fear of biting the hand that feeds them.
The local ABC, CBS, Fox and NBC stations didn’t broadcast any stories about the 17 groups buying air time to support or attack Governor Scott Walker. read more
Appeals Court Approves Secrecy for TV Political Ad Donors
In order to avoid disclosure, Americans for Prosperity, which was founded by billionaire David Koch, and Crossroads GPS, which was formed by Karl Rove and Ed Gillespie, reorganized as nonprofit social welfare organizations, which are not allowed to concentrate on political advocacy a(but do so anyway), but do not have to reveal the names of their donors. The new ruling eliminates the need for this charade. read more
Government Subsidies to Sugar Industry Add More Than $2 Billion a Year to Food Prices
As a result of import tariffs and agricultural loans authorized by Congress, inflated sugar prices have forced Americans to spend $2.4 billion more each year on food containing the sweet ingredient, with sugar producers gaining $1.4 billion in benefits.
The sugar industry gets its way through substantial donations to lawmakers. This election cycle alone, sugar farmers have contributed $3.6 million to campaigns, which is more than what Big Tobacco has donated ($2.8 million).
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